Terms of Business Contents

Terms of Business Contents These Terms of Business apply from 1st October 2013 1.Risk Warning 22. Financing 2. Introduction 23. Dividends 3. General 24. Out of Hours Markets 4. Definitions 25. Corporate Actions 5. Law and Jurisdiction 26. Order Execution Policy 6. Demo Accounts 27. Manifest Errors 7. Accounts 28. Force Majeure 8. Account Size 29. Authorised Persons 9. Passwords 30. Website 10. Communication and Contact Details 31. Third Party Providers 11. Commissions / Charges / Tax 32. Intellectual Property 12. Deposits / Withdrawals / Balances 33. Negative Balances 13. Minimum / Maximum 34. Market Abuse 14. Margin 35. Money Laundering 15. Trades 36. Conflicts of Interest 16. Rolling Trades 37. Treating Customers Fairly 17. Futures Trades 38. Privacy and Data Protection 18. Markets 39. Closure of Accounts 19. Spreads 40. Complaints Procedure 20. Orders 41. Responsible Trading 21. Gapping 42. Appendix

1) Risk Warning (a) Foreign Exchange and Contracts for Difference with GKFX are both margin traded products. Therefore they inherently carry a high level of risk compared to other investments, and as such you could rapidly lose more than your initial deposit. They are all legally enforceable under the Financial Services and Markets Act 2000. (b) Margined trades are trades on the price movement of a product. They settle based on the difference between the opening price and the closing price of the trade. (c) You should not trade any margined product unless you fully understand all the risks involved with doing so and that you have sufficiwent resources available to you that in the event, however unlikely you may deem it to be, that there is an adverse movement in the price of that product that you can meet the financial obligations required by you with respect to margin payments and losses. (d) Margin trading is leveraged trading that allows gearing which means that you can place a large trade by only putting up a small amount of money as margin. If the price moves in your favour you can greatly increase your profits. However even a small movement in price against you can lead to substantial losses and you may be required to deposit additional margin with us immediately to keep these trades open. You are liable for this and for any losses that may occur if your positions are closed. The potential losses, or profits, for margin traded products are, or could be, unlimited and this should always be considered by you when making trading decisions. (e) Not all trades can be opened or closed 24 hours a day. Many are subject to strict opening and closing times which can fluctuate. These are posted on our Market Information Sheets (MIS) which are available online and which we endeavour to keep up to date, without any obligation or liability on us to do so, or for its accuracy. For example national holidays and Daylight savings changes will affect the times when you can trade. Also a market may be suspended for a variety of reasons and during this time you will not usually be able to trade. (f) You are placing trades on our prices and not those on an exchange. Depending on the market, our prices will usually be based on an exchange price but can fluctuate away from the underlying prices due to a variety of reasons. All open trades can only be closed and settled with us. (g) GKFX will hold unutilised retail customer funds in a segregated bank account. We reserve the right to utilise some or all of those funds up to the level that the client is using to fund open positions. However even in a segregated account you may not be afforded complete protection. All individual client funds are subject to the Client Money Rules of the FCA (formerly the FSA), unless stated otherwise, and are guaranteed by them under the Financial Services Compensation Scheme up to a maximum of 50,000. (See Deposits / Withdrawals / Balances). (h) If you are in any doubt whatsoever about any aspect of the risks involved in FX or CFDs then we recommend that you seek independent professional help or advice before continuing. (i) If you are considering trading in shares in a company that you work for then you should seek legal advice beforehand to ascertain that you are not in breach of any regulations. (k) You acknowledge that you and no member of your family are classed as a PEP (Politically Exposed Person).

2) Introduction (a) GKFX ( us, we, our, ours, ourselves ) is the trading name of, which is authorised and regulated by the Financial Conduct Authority (FCA), formerly the FSA. The FCA s address is 25 The North Colonnade, Canary Wharf, London E14 5HS and www.fca.org.uk. Our registered address is, 30 Charles II Street, London. SW1Y 4AE. (b) These terms of business cover both Foreign Exchange (FX) and Contracts for Difference (CFD). You agree to be bound by those areas of this agreement that are pertinent to the types of accounts held by you, and the types of trades executed with ourselves. (c) These terms of business set out the agreement between us and the client or customer ( you, yours ) and should be read carefully together with any amendments and addendums and apply to clients who are not domiciled in China or introduced to GKFX by an introducer in China. (d) These terms of business do not in any way affect your statutory rights and do not restrict the liability owed by us to you under the Financial Services and Markets Act 2000 or any other regulations imposed on us by the FCA. (e) If any part of this agreement is deemed to be invalid or unenforceable then the rest of this agreement will still be enforceable. (f) These Terms of Business will be deemed to be the most recent and applicable and will come into effect when we open an account or accounts for you, or when we notify you of these new terms of business taking effect from a previous version. (g) They will apply to all new and existing trades taken out, and where possible we will give you at least 10 working days notice of any major changes taking effect. This may be in writing, email, notification on the website or through any other means deemed appropriate by GKFX. (h) This may not include margin requirements or spreads which can change rapidly due to market developments. Also certain markets may become suspended or we may cease trading some markets for which we will not be held accountable or liable. (i) The words trading and trade are used interchangeably in these terms of business. (j) Upon your acceptance of these terms of business and our acceptance of you as a client you warrant to GKFX that every trade you transact with us you do so directly with us in accordance with these terms of business. (k) As a client of GKFX you also undertake only to trade or if: (1) You are not contravening any legislation in the country from where you are at the time. (2) You are over the age of 18 years old. (3) You are not bankrupt or going through bankruptcy proceedings or subject to any legal regulations that may prevent you from adhering to these terms of business. (4) Your personal details held with us are up to date

(5) Where you are employed by a regulated firm you have sought permission from your compliance officer and you authorise us to provide your compliance department with copies of your personal account dealings. If you do trade while contravening one of the above then you will still be held accountable and liable for all trades and their corresponding profits or losses. 3) General While Foreign Exchange is traded globally, CFDs are not. Certain countries do not allow their use and it is the responsibility of the individual to make sure that they comply with any local laws that are applicable to them, both in terms of actually holding an account and the relevant applicable tax laws. Specifically we do not allow residents of the USA or its citizens to hold an account with us. You undertake not to access any websites or trading platforms associated with GKFX from the USA or any other country where it may be against the law of that country to trade with a UK based company. Any prices or quotes that we may show in advertisements, promotions, on television or on our website are purely for indication only. Only prices on our Internet Trading Platform are available to trade on, subject to the other terms of this document. You accept that wherever possible we will communicate with you via electronic means such as email. In addition to this, if you are legally required to accept anything where normally a signature would be required then this can be done electronically by clicking the appropriate button or following other on screen instructions via our web site. You will at all times take reasonable measures to ensure that you pass no computer viruses or such like onto our system network We have the right to assign the legal benefit and responsibilities of this agreement, at our absolute discretion, to a third party, having given prior notice to you of at least 10 working days. For the purposes of these Terms of Business, and GKFX Markets should be deemed the same legal entity. 4) Definitions GKFX = SL = Stop Loss. Bid = The price which you can sell at. Offer = The price which you can buy at. TP = Take Profit. Limit Order = An order to buy below the current price or to sell above the current price.

FX = Foreign Exchange. ITP = Internet Trading Platform. CFD = Contract for Difference. NTR = Notional Trading Requirement. FCA = Financial Conduct Authority. MIS = Market Information Sheets. P+L = Profit and/or loss. Tic / Pip / Point = The minimum increment movement of the price which you are trading on which are shown on the MIS. Spread = The difference between the bid and offer. Slippage = The difference between an order level and the execution level. Gapping = When the price of a market jumps. Margin Call = When you are running low of funds in your account and are requested for more funds to stop your position from being closed out. (Where your cash balance does not cover your notional trading requirement and open position profit and loss). Grey Market = A market that is still tradable with us although the underlying or actual market may be closed. Business Day = Working day, not including weekends and some public holidays. Long = Placing a trade where you profit from the relevant market from going up. Also known as buying or buy. Short = Placing a trade where you profit from the relevant market from going down. Also known as selling or sell. 5) Law and Jurisdiction (a) These terms of business apply to all trades or orders of any type carried out with us, and are governed by the laws of England and Wales. (b) In the event of a default by you, GKFX Financial Services Limited, and all of its subsidiaries, reserves the right to bring proceedings against you in any other court in any other jurisdiction permitted by law if it is deemed appropriate by us to do so regardless of where you were domiciled when the account was opened, or when the trade was executed. (c) You will be classified as a Retail Customer, unless you have agreed with GKFX in writing to the contrary. However;

You may request at any time, or we may at our discretion request you, to be reclassified as a Professional Client or Eligible Counterparty. This must be agreed in writing between both parties and you must acknowledge that you are aware that you will lose some of the rights afforded to you under FCA rules by signing a loss of protection notice. To be considered as a professional client you must also warrant that: You have 500,000 savings. You have traded at least 10 times in each of the last four quarters. You are, or have recently been, employed in a job that requires knowledge of the markets you will be trading. (d) In the event of your death, and upon receipt of proof, we will close all your open trades immediately, or as soon as practically possible. Your estate will then be the beneficiary from any funds held or liable for any losses or sums owed. (e) You will be liable for and fully indemnify GKFX for all costs, damages and other legal expenses that we may incur as a result of you breaching these terms of business, or any other negligent act by you. (f) The maximum amount of liability that GKFX shall be held liable for in respect for any financial loss suffered by you will be equivalent to the initial margin requirement for that trade. (g) If these Terms of Business have been translated into any other language, then it is these original Terms of Business, written in English, which are deemed to be legally binding. 6) Demo Accounts Entry to the demonstration (demo) platform will be disabled after 30 days. With the GKFX demo or virtual account, you are not trading with real money. Any money you make or lose is fictitious and cannot be transferred to a real account, cashed in or redeemed in any way. The demo account is purely for practice and for demonstration purposes only, and contains a small selection of the markets that we offer. Profits or losses incurred while trading in a demo environment do not necessarily reflect what you may achieve when trading in a live environment. FX and CFDs are volatile instruments and it is possible to rapidly make or lose more than your initial deposit. 7) Accounts (a) GKFX may refuse your application to open an account for any reason and is under no obligation to provide any reasons for doing so.

(b) GKFX may at its discretion disclose your personal information to a credit reference agency, which may keep a record of the search, to verify your details when applying for an account. (c) You have one agreement between GKFX and you which covers all accounts you may hold with us even if they are in different asset classes (ie FX or CFDs). This agreement covers all trades, open or closed, orders and any other transactions. (d) In the event that we exercise our rights under this agreement to close all, or some, of your positions and cancel any pending orders and /or to close your account(s) we have the absolute right to consolidate the cash balances held in any of the accounts you hold with GKFX or any of its affiliates. We may also, at our discretion, net off your positive account cash balances against negative account cash balances, and your profits from any open trades in an account against losses on open positions in another account. We may also offset any funds against any other liabilities owed by you including, but not limited to, legal costs and interest. In the event that monies held are in different currencies we will convert these to one universal currency at the prevailing market rate, leaving one amount either payable by us to you or by you to us. (e) You accept these Terms of Business, and any amendments or additions, for all accounts that you hold with us, or our associates, whether they are main accounts or sub accounts and no matter what areas of business they cover. 8) Account Size (a) We reserve the right to impose a maximum account size that we are willing to allow clients to hold with us. This may be set the same for each of the account types (FX or CFDs) or differently. You may hold more funds in your account than the account limit, but you will not be permitted to utilise those funds that are in excess of the account limit for the purpose of trading. (b) You may be notified of the account size on acceptance of your application for an account, and we reserve the right to change this amount at any time with no prior notice. (c) The account size limit does not affect the statutory protection afforded to you in the aforementioned Financial Services Compensation Scheme. (d) We may choose to set this limit in US dollars, Euros or Sterling and this will be applied to whatever base currency that your account his held. (e) If for any reason your open positions exceed the size that your account size permits due to an error or other reason, we reserve the right, without the obligation, to bring your account back to within its limit by closing some or all of your open positions. (f) Regardless of the maximum account size placed on your account, customers can lose or make substantially more than that amount.

9) Passwords (a) It is imperative that you keep your password secure and confidential and under no circumstances should you divulge it to anybody. No one at GKFX will ever ask you your password. (b) If you have chosen your password then it is your responsibility to ensure that it is unique, secure and unlikely to be guessed by anyone. (c) If you think the security of your password has been compromised, then you must inform us immediately. GKFX accepts no liability for any unauthorised use of your account. (d) It is also important that you keep your user name / account number secure as this is used as part of our identification process. 10) Communication and Contact Details (a) You undertake that you will provide us with current and up to date contact details when opening your account and keep us up to date with any changes to these details. These should include telephone numbers where you can be reached during the entire day and your current address. (b) You also undertake to provide us with notification of any temporary change in these details for example, if you go away on holiday, in case we need to contact you for a margin call (see section on Margin). (c) If for any reason you are not going to be contactable then it is your sole responsibility to make sure you have excess funds in your account and that you have put in place procedures that will enable your account to remain in good order. If you are in any doubt about your ability to achieve this then you should close all open positions or orders. (d) Any trades on your account must be made by you and not by a third party, unless you have given specific authorisation for someone else to trade on your account via a power of attorney or trading authorisation, or you have activated a trading robot. If you have facilitated someone other than you trading on your account without prior written agreement with us then you are still liable for all trades carried out on this account. (e) All trades and orders of any description must be placed via the ITP or, in extreme circumstances, on the telephone. Under no circumstances will we accept trades or orders via email, fax or mail or SMS text message unless you have received prior permission from GKFX. (f) We will use your name, account number and other personal data to identify you when you trade or leave an order via the ITP or on the telephone. If you suspect that the security of your account number and or password has been breached then it is your responsibility to notify us immediately. (g) If we agree, in an extreme circumstance, to accept a trade or order in a different way to those expressed above then we will not be held liable for any losses incurred as a result of an error, delay or omission.

(h) You agree that we will record all telephone dealings between you and us in accordance with FCA guidelines and these will remain the sole property of GKFX and be used as evidence in any disputes. (i) We will send you an electronic statement via email on a regular basis. If you discover an error on your account then must notify us immediately or in any event within three business days. This covers both incorrect and missing trades. (j) We have the right to communicate with you via telephone, email or writing at any time to discuss or communicate any aspect of your account or our business whether relevant to you directly or not at that time. 11) Commissions / Charges / Tax (a) GKFX do not charge any commission on any trades. It makes money from the spread, which is the difference between its bid price and the offer price. (b) It is your sole responsibility to assess and pay any tax liability that may occur from the results of any trades carried out by you. If you are unclear in any way about this then you should seek independent tax advice from someone authorised to do so from your tax jurisdiction. (You should seek advice from your accountant, the tax office or other relevant experts). (c) We reserve the right to pass on any costs or charges that may arise in the future, (for example a change in stamp duty payments in the event of a change in governing regulations or the law). (d) We may pass on any increase in costs associated with going short on an equity (i.e. placing an opening sell trade) if our charges are increased by our brokers (i.e. margin or financing). (e) We are not under any obligation to reveal any profit, interest or any other kind of remuneration made by us from any trade under any circumstances. (f) If you have been introduced to GKFX by a third party then the spreads you see may be wider than the core GKFX spreads, which is an additional spread charged by the introducing party and not GKFX. (c) We reserve the right to pass on any costs or charges that may arise in the future, (for example a change in stamp duty payments in the event of a change in governing regulations or the law). (d) We may pass on any increase in costs associated with going short on an equity (i.e. placing an opening sell trade) if our charges are increased by our brokers (i.e. margin or financing). (e) We are not under any obligation to reveal any profit, interest or any other kind of remuneration made by us from any trade under any circumstances. (f) If you have been introduced to GKFX by a third party then the spreads you see may be wider than the core GKFX spreads, which is an additional spread charged by the introducing party and not GKFX.

12) Deposits / Withdrawals / Balances (a) You can fund your GKFX account at any time on line via our website. You can use a vast array of methods which are constantly expanding, details of which can be found online. In addition to this, you can make a bank transfer directly from your bank to ours, details of which can be found on our website. Unless GKFX agrees otherwise, payments can only be made from the client s own personal bank account. (b) You can request a payment from your account at any time. These requests are processed daily by our accounts department. All monies returned will be paid back to the source from where they originated. In the event that we are unable to do this because this would breach deposit limits applied by that financial institution, then we will have to return the funds directly to your bank account. This will be done in line with our strict anti money laundering procedures, and may include you having to provide additional identification and proof of the bank account belonging to you. (c) We reserve the right to pay you interest on unutilised funds held in your account, and we will inform you if we intend to do this. This will be calculated daily and paid monthly in arrears. We may also impose a minimum unutilised account balance that this will be applicable to. (At present this is not the case as we do not receive interest on client deposits held in segregated accounts.) (d) Once funds have been deposited into your account, you can place trades utilising these funds. If you want to place an additional trade but have insufficient margin to do this, you must deposit more funds into your account first. (e) We will pass on any costs associated with taking deposits from you. These may be in the form of a percentage commission charged by the debit/credit card company. (f) We will pass on any costs that may be associated with transferring money back to your bank, credit or debit card from your account when withdrawing money. (g) At any time you may request all unutilised funds on your account to be repaid to you. If from the time of your request to the time that we process the request the value of any open positions has moved such that you no longer have the amount requested available then this will not be possible. We also reserve the right to withhold any payment if we feel that it may be required to meet future short- term payments. (h) In the unlikely event that you have a negative balance on your account, which may have arisen from a market gapping (see section on Negative Balances and Gapping) you are required to clear this immediately. This should be done by debit/credit card or any other equally instant method of payment. (i) If a negative balance goes unpaid then after a period of 7 days, we reserve the right to take any action necessary to recover the debt and charge interest during this process. (j) All retail client funds deposited with GKFX will be held in a segregated account in accordance with the FCA Client Money Rules. When you place an opening trade or bet on your account(s) you will be utilizing some or all of your deposit as initial margin. This margin will still be held in the segregated account.

GKFX will transfer funds to and from the segregated account which it requires to maintain your open positions in the form of daily profits or losses on open positions. During this period you will have no legal claim over these funds and in the unlikely event of the firm s insolvency you will have no rights or claims to this money if they are being used to fund open positions. (k) Under the FCA Client Money Rules, client funds held by us will no longer be deemed client money when that money becomes owed to us by the closing of a trade that results in a loss. (l) GKFX reserves the right, in accordance with section 7.2.3 of the FCA s Clients Assets Sourcebook, to use part or all of a non retail clients segregated funds if they are being used to fund an open trade or bet. These funds will at that time, from a legal standing, no longer be considered as client funds, will not be segregated and may be used by us in the course of our business. (m) At no time will GKFX accept or make a third party payment, unless, at its absolute discretion, it has agreed to do so in strict adherence to anti money laundering regulations. (n) In the event of an account being left dormant or un-utilised for a period of 5 years GKFX may start proceedings in attempt to contact the registered owner of the account. In the event of the account holders death then an attempt will be made to contact their estate or heirs. All reasonable steps will be taken, where possible, to locate the legal title holder of the account, but if after a further period of 12 months no contact has been made then GKFX may close the account and will no longer consider the funds held on that account as client funds. 13) Minimum / Maximum Every market we quote, whether in FX or CFDs has a minimum trade size and a maximum trade size. These are clearly shown in our Market Information Sheets, or can be found by contacting the Dealing Desk. 14) Margin (a) When any trade is placed, an initial margin requirement must be met. This is a minimum deposit that must be made to fund that position. This is also known as the Notional Trading Requirement (NTR) and is required as a form of security in case the trade starts to lose money. (b) These funds must be cleared funds, paid to us via a debit/credit card or via Chaps or SWIFT. We do not accept cheques except under exceptional circumstances, and only with prior agreement with GKFX. (c) These NTRs vary immensely from product to product and can be viewed on the MIS. (d) For example in FX it may be as low as 1 percent of the total actual value of the trade, up to 50 per cent for an equity trade as a CFD. (e) The NTRs for all markets are published in our Market Information Sheets (MIS) on our web site.

(f) These can change according to how volatile the market conditions are at the time. If we do change an NTR and you have an open trade at the time, then we will endeavour to give you one week s notice of this change. However in exceptional circumstances we reserve the right to implement this change immediately, which may mean you are instantly put on a margin call or are over your account size. We will endeavour, if this situation arises, to be sympathetic with any problems that may occur. (g) Although margin requirements are automated in our system, it is your responsibility at all times to know your positions and to monitor the state of your account, placing more funds into your account as and when is necessary. Any losses or additional losses that arise from the failure to close these positions will be your responsibility (h) Our MT4 platform will liquidate your positions when your equity, which is your cash plus your open profit/loss, falls below 10% of the total margin required of all your positions. (i) You will go onto margin call when your available funds fall below zero. This is when your cash balance plus your margin requirement plus your P+L is less than zero. It is your responsibility to monitor this, and you can help to manage this level with the use of stop loss orders (see section on Orders). (j) We may issue you with a margin call depending on the size of your positions. This will require you depositing cleared funds with us immediately. We do not accept any liability if you are or are not placed on Margin Call. The responsibility lies with you at all times to maintain sufficient funds in your account. (k) We are entitled to request these funds to cover a margin call at any time, and you are obliged to pay cleared funds immediately to cover this. We may at our discretion close your position(s) partly or in full if your tradable funds are below zero. (l) Margin calls can be made by telephone, voicemail, email, fax, letter or any other method deemed appropriate by GKFX. It is your responsibility to ensure that we always have the correct and up to date information on file so that you may be contacted. If we are unable to reach you but have left a message notifying you of the margin call, or were unable to contact you in any capacity through no fault of ours, then you will be deemed to have been notified. (m) Any margin call over 10,000, or equivalent, made before midday UK time must be paid before 4pm UK time that day, or if made after midday then by 4pm the next business day. Just because a margin call has been made and you are arranging payment, we may still close your position or part of it if the position moves further against you. Funds must have cleared and be in our account to be valid. (n) GKFX will not be liable for any losses incurred by you arising from your positions being closed due to a margin payment not being made in the required time or manor. (o) Margin payments can be made by debit or credit card. For amounts over 10,000, or equivalent, you can make a bank transfer or Chaps payment.

15) Trades (a) GKFX will act as the principle counterparty on all trades or orders undertaken between you and us. (b) All Spot or rolling Foreign Exchange trades roll every day to the next business day if you are holding a position at 5pm New York time, and are subject to financing. This can change due to public holidays or other events and we will endeavour to notify you of any changes via our website. Foreign Exchange futures trades are not subject to financing. (c) All trades or orders carried out by us are done so on an execution only basis, unless a prior agreement has been reached and agreed to in writing. (d) All trades and orders initiated by you will be treated as an offer by you to deal on our quote which we can at our discretion accept or decline. Our displayed quote should not be deemed an offer by us to deal at that price. (e) We are under no obligation to suggest ways for you to reduce any risk exposure you may have. (f) We are not expected to, or licensed to, give specific advice on investments or make any recommendations to you. If such advice or recommendation is given, whether intentionally or not, and acted upon by you then this should be solely at your discretion and we will not be held accountable in any way. If an associated third party gives you advice then it is your sole responsibility whether you chose to follow that advice and GKFX accepts no liability for the consequences. (g) Any information given to you by us in good faith and acted upon or not by you, in the absence of fraud or negligence, will not lead to us being held accountable for any losses, or profits, made by you. (h) All trades carried out by you are done so entirely on your own judgement, whether or not you acted on or relied upon any information given by us on the market concerned whether it be the price, or positions held. Any trades carried out by you in such a circumstance will be held binding and deemed valid. (i) You should fully understand and make yourself aware of all financial considerations required by you before you place a trade. This includes the notional trading requirement (NTR), and the consequences of a trade moving against you. (j) It is your responsibility to make sure you fully understand all asp ects of any trade placed by you and the laws and regulations governing it. If you are in any doubt as to any area of a trade then you should seek clarification with us before the trade is carried out. (k) We are under no obligation to accept any trade from you, whether it is to open or close a position if we believe that by doing so would be illegal. In the event that a trade had been opened then we reserve the right to void the original trade.

(l) We reserve the right to void, or amend any trade that may have arisen from the price being wrong due to a manifest error, a latent price or a force majeure (see later sections). (m) We are an internet based trading company and as such you accept that there are risks with your internet connection to our website failing and that our Internet Trading Platform (ITP) could fail. In such circumstances you accept all liabilities for any trading losses that you may occur as a result of this, and you must contact GKFX immediately for us to try and help. If you do experience problems then it is imperative that you contact the trading desk immediately. (n) When you place a trade, you deal on our price. We are your counterparty. You sell at our bid price and buy at our offer price. All orders are treated in the same way and will be triggered on our bid or offer. (o) You may hold opposing positions with GKFX. This means that you can be long and short the same product. You should be careful when you want to close a position that you do close a specific position rather than create a position the opposite way around. While this would mitigate your exposure, you would then have more positions open. (p) You can close part of your position if you wish, by entering an amount on the trading ticket less than the amount you already have open. (q) If your trade does not automatically roll because it has an expiry date, as in a futures market, then this will automatically close on your account at the prevailing closing rate. This rate may not always be determined as per the MIS, and in extreme circumstances, GKFX reserve the right to add a closing spread to this price to fairly represent where we un-hedged the position. This may typically occur in times of extreme volatility or illiquidity. (r) In very rare circumstances GKFX reserves the right to extend the expiry date of a product if the market liquidity is such that it is impossible for us to close our hedge in the market. This might be because of a market being limit down for example which may have a similar effect to the market being closed. (s) If GKFX do reject a trade, for whatever reason, it is your sole responsibility to make sure that you are aware of what positions you have or do not have open as a consequence of this, and if necessary attempt to trade again to achieve your desired result. (t) Trades in FX or CFDs are always done in the Notional Amount or via Lots which is shown in the Market Information Sheets (MIS). (1) This means that if you are trading FX, then if you wanted to buy 100,000 Euros vs US Dollar then you would buy 1 lot. You could buy just 0.1 lots if all you wanted to buy was 10,000. (2) If you were trading equities and you bought 1 CFD you would be buying 1 share. So if you wanted to buy 10,000 shares in Microsoft you would buy 10,000 CFDs. (See example in the Appendix)

16) Rolling Trades (a) Rolling trades have no theoretical expiry date. They are automatically rolled by us at the close of business every day and may be subject to a financing charge (or credit) depending on what market it is. If there are insufficient funds in your account at the time the trade is rolled then GKFX reserve the right not to roll the position, and it will be left to expire at the market price. (b) All rolling trades, whether in FX or CFDs are subject to financing. These are calculated in different ways. For FX this is calculated using the market rate known as tom next. (c) For all other rolling trades the financing is calculated using the prevailing interest rate of the product concerned with up to a 2% charge. Thus if you are long a market (buying) then you are charged up to 2% on top of the overnight funding rate for the currency of that market, or if you are short a market then you are credited up to 2% under the overnight funding rate for the currency of that market based on the equivalent market value of the trade. Depending on rates at the time this can lead to you being charged whether you are long or short. (For example, where the interest rates are 1%, you will be charged 1 2 = 1%). We reserve the right to change the way in which we calculate this financing. (d) Apart from FX, our rolling trades are usually based on the underlying market. However occasionally these prices can look significantly different from where the underlying market appears to be trading at that time because we base our prices for some of these markets on where the futures price is, adjusted by a fair value. This is quite normal market practice and enables us to quote some markets out of hours and also after major news events when the normal underlying market price maybe stagnant or very wide. This is calculated by taking the Futures Price and taking away the estimated dividend or index points and adding the cost of carry based on the interest rate. In certain instances we may quote a custom or unique market where there is no underlying market. In such cases GKFX will price this grey market as fairly and transparently as possible. (e) GKFX may at its sole discretion crystallise the profits or losses of any clients rolling trades. This crystallisation, known as a bed and breakfast, will be done at the current mid price at that time and will not incur any penalty charge or spread being applied. A client may, at any time, request that a bed a breakfast is carried out on a rolling position to crystallise a profit or loss. There may be a nominal charge for this service. 17) Futures Trades All non-rolling trades will be treated as a future. That means that unless it is a rolling future it will expire on a specific date and time. These details can be found in our Market Information Sheets.

18) Markets (a) GKFX offers an extensive range of markets which is evolving constantly. The MIS (Market Information Sheets) will be updated online to reflect any additions or amendments to the markets that we quote or the specifications of those markets. (b) It is important that your keep yourself up to date with the specifications of these markets as they can change. (c) None of the markets that GKFX make prices in settle with physical delivery of that product. All markets are settled with cash, with either us paying you or you paying us. (d) You have no legal rights over any company in the form of dividends, voting rights or ownership if you trade on an equity in the form of a CFD. (e) While every effort is made to ensure that the prices that GKFX publish over our ITP are correct, occasionally the prices quoted by us may not be correct. In such cases GKFX will not be held liable for any losses incurred as a result of not being able to deal at this price. (f) In the event of something causing a disruption to a market GKFX may at its absolute discretion, close a market, cancel orders or fill orders at a level that it believes in good faith to be appropriate. This may immediately put you on a margin call, meaning that you are close to being closed out because you are running out of funds. 19) Spreads (a) Every effort will be made to keep spreads as narrow as possible at all times while a market is open and if we are making an out of hours market. (b) GKFX reserves the right to change its spreads at any time in any market for any reason. Examples of this might be a lack of liquidity, volatile conditions or out of hours markets. (c) During this time we may change our maximum deal sizes as well. (d) GKFX may offer you, or move you, to an account with variable spreads rather than fixed spreads at any time. 20) Orders (a) An order is a request by you, to us, to execute a trade when a certain price in a product is achieved. This may result in a new position being opened or an existing position being closed. (b) Orders fall into three key areas. These are Limits, Stops and Stop Losses. (c) A Limit order is an order to either sell at a level higher than where the current price is or to buy at a level lower than where the current price is. If this Limit order is executed then this could either open a new trade or close an existing one.

(d) A Stop is an order to either buy at a level higher than where the current price is or to sell at a level lower than where the current price is. If a Stop order is executed then this could either open a new trade or close an existing one. Usually Stops are used to open new positions as a Stop Loss is used instead to close a position. (e) A Stop Loss is an order which is attached to an existing trade. It is an order to either buy at a level higher than where the current price is or sell at a level lower than where the current price is. If a Stop Loss is executed then it will close the existing position which it is attached to. (f) It is important to note that if you place a Stop order, rather than a Stop Loss order, so that a position you have open will be closed if a certain price level is met, then this order will still be live even if you close out the trade or position manually. So you would then need to cancel the Stop manually. (g) Stop Loss orders are GTC (Good Till Cancelled) where as Stops or Limits can be left GTC or GT (Good Till) which means you can choose when it expires. (h) All orders will only be triggered when GKFX s price reaches, or goes through, that level. For BUY orders that will be when our offer reaches that level. For SELL orders that will be when our bid reaches that level. (i) We reserve the right not to execute an order if you do not have sufficient funds in your account at the exact time it is triggered to satisfy the NTR (Notional Trading Requirement). (j) All orders are filled on a non guaranteed basis. This means that GKFX do not guarantee to fill any type of order at the exact price requested. We will always endeavour to fill orders at the requested price, where we can, or at a better level if possible. However there may be circumstances where this is not the case, where a market price gaps for example and we will fill you at our next available price. (See gapping section). (k) All orders, regardless of their type, can only be triggered during GKFX s market opening hours for that individual market (See Market Information Sheets - MIS). (l) All orders can only be left a minimum distance away from where the GKFX price is at that time. This can be seen on the deal ticket or by contacting the dealing desk. (m) On the Meta Trader 4 platform you can leave a trailing stop loss which will automatically move up or down depending on your position and if you are making money. This will only work while you are logged into the platform. (n) We reserve the right to refuse any amendments to any type of existing order. 21) Gapping No market is immune to gapping. This occurs when a market price jumps (or gaps) often following a news announcement. In the case of shares, this might occur after the results or a profit warning. For other markets this may occur after some important economic news. We will endeavour to fill you at the first price available to us when this situation occurs.

You should be very aware that if you trade over news announcements the price you actually trade at may be vastly different from the level you intended to due to the market gapping. By its very nature the market concerned can gap up or down. This is of concern if you have an order to buy or sell on that market. For example: (a) If you were long an equity and you had a stop loss order in the system to sell your position if the market price went lower and you did not want to lose too much money, then if the market gapped downwards then it might gap through the level of your price to a lower price which is where you would be filled. Thus you would lose more money than you were prepared to lose. In exceptional circumstances this might result in you having a negative balance on your account for which you are legally liable. (b) You could also benefit from gapping as you might for example be short a market with a limit order in the system to take profit lower down, and buy it back. If the market gapped through your level then you would end up buying the position back at a better rate than you intended. 22) Financing GKFX will on a daily basis usually calculate financing due on any positions that you hold overnight, unless they are futures contracts. (a) On FX this means the cost to roll your position forward from one business day to the next. As a rule FX deals two working days ahead, and we use market rates, where possible, to give you the best possible prices to roll your position. This is usually done on any positions held at 5pm New York time (EST) and we roll them using Tom Next points to the next business day. This financing can result in you paying or receiving funds depending on your position and on what currency pairs you have positions in. You are more likely to receive financing if you are long a currency with a higher interest rate than the one you are short. The financing is calculated on the actual notional value of your trade. (b) On Equities, Indices and Commodities the financing is also based on the actual value of any trades held. If you are long, you are effectively borrowing funds to hold the trade, therefore you are charged up to 2% over the prevailing interest rate. If you are short, you are effectively depositing funds to hold the trade and you are credited up to 2% under the prevailing interest rate. This is calculated using the daily closing price of the product. Where interest rates are low, this could result in an interest charge. We reserve the right to change the financing rates at any time or calculation methods at any time. (See examples in the Appendix) (c) For Muslim clients GKFX may offer a Sharia account where the spreads are wider but no financing is applied to positions. However these accounts are monitored closely for abuse and may be subject to a commission charge if deemed to appropriate.

23) Dividends For Equity or Indices trades when a Dividend is due we will credit or debit your account with the corresponding amount, if you are holding a position on ex-dividend day. (a) If you are long an equity or index then we will credit you. (b) If you are short an equity or index then we will debit you. GKFX may at its absolute discretion withhold or change the way in which a dividend adjustment is made. 24) Out of Hours Markets GKFX may at its absolute discretion quote a grey market in any market it chooses. It will base the price for that market on other relevant markets that are open using a complex algorithm. All orders will be monitored while this market is open with GKFX. Check the MIS for trading times. 25) Corporate Actions All trades in Equities and Indices are subject to Corporate Actions. (a) GKFX will adjust all trades that a corporate action may affect. (c) This adjustment may in some instances lead to the initial trade being cancelled and replaced with a new trade at a new price. (d) In the event of an outright takeover of the company, if you have a trade on we will close the position at the final agreed sale price. (e) At no stage do you have any voting rights in the company concerned. 26) Order Execution Policy General a) GKFX is regulated by the FCA and as such must follow an execution policy. This policy is applicable to all trades and orders placed and executed with GKFX. b) GKFX Execution Policy forms part of our Terms of Business and as such, by agreeing to these Terms of Business, you are agreeing to the terms of our Order Execution Policy. This policy applies equally to orders and trades for both Retail and Professional Customers. c) GKFX provides margin trading services in Foreign Exchange and CFDs. It is GKFX decision as to what markets to offer its clients and it does so not as a broker but as a principle and counterparty to each trade. As such, every market offered by GKFX is quoted as a derivative of the underlying market and we are the only execution venue to which you have access through us.

d) GKFX facilitates financial dealing via a number of online trading terminals depending on which markets you wish to trade. In exceptional circumstances, for example if there is an IT breakdown then telephone trading is accepted. e) GKFX offers a 24 hour service five days a week. Not all markets will be open or tradable during this time and all relevant information on this subject is available on our Market Information Sheets (MIS). f) GKFX may at its discretion hedge some or all of a client s position in the underlying market. GKFX at no time owes a fiduciary duty to the client as an agent or broker other than its normal obligations governed by financial regulations. g) While every effort is made to ensure that GKFX prices are the best available to its clients, there are no guarantees that you might not be able to get a better price elsewhere. Factors The execution policy put in place by GKFX monitors several factors that ultimately affect this policy. These most important of which we believe are: a) Price: GKFX takes the underlying market price of the derivative it is quoting and then applies an algorithm to this price to achieve its own market price. The underlying feed that GKFX uses may be from one source or exchange or in the case of FX from several feeds. Where several feeds are used the best bid and offer combinations are used to maintain tight spreads at all times. b) Costs: Our market price will often be different to the underlying as it may also include commissions, financing and, in the case of equities, dividends. c) Liquidity: The price made by GKFX, unlike the underlying market, is usually good in up to a certain size. In order to maintain this additional liquidity to the market GKFX may apply a different spread to the price than the underlying market has. d) Speed of execution: In order to facilitate the speed of execution GKFX have imposed a maximum deal size on every market, viewable in the MIS. This limit is regularly monitored and takes into consideration many factors including liquidity and volatility to determine an amount that we are confident to accept without referral to speed up execution. Orders a) An order will be triggered on our price. This means that a buy order will be triggered when our offer price gets to that level and a sell order will be triggered when our bid price gets to that level. b) All orders will be filled at their requested levels wherever possible or better. There are, in certain instances, situations where this is not possible. If a market gaps through the requested price level of an order then GKFX will fill your order at the next available price, or better. (See section on gapping).